On the occasion of the flotation of the first European companies on the European Association of Securities Dealers Automatic Quotation (EASDAQ) on 28 November 1996, the new European stock market for smaller fast-growing companies, Commissioner Christos PAPOUTSIS, responsible for Small and Medium-sized enterprises, made the following statement:

"I wish EASDAQ the best of success. I welcome this initiative, as well as all initiatives which can improve access for Small and Medium-sized Enterprises to equity capital. European enterprises are in general extremely undercapitalised, and over-dependent on bank loans for their financing. One undoubted reason for this, is the absence in Europe of a stock market such as the US NASDAQ, which focuses on growing companies with significant potential. The creation of EASDAQ should go some way towards improving the availability of equity financing for European SMEs, and thus remove some of the barriers which prevent them from expanding and creating jobs. The improving access for SMEs to capital markets is an essential plank in Europe's efforts to sustain the growth of enterprises and thus to improve opportunities for job creation. The Commission will continue to play its full part in that task".

Europe-wide capital markets such as EASDAQ, and cross-border trading on stock exchanges, were made possible by the establishment of the single market in securities dealing through the Investment Services Directive and the Capital Adequacy Directive. These Directives made competition between stock exchanges possible, on the basis of free access by investment firms to all exchanges with a single passport granted by their home regulator, and the placing of remote trading screens by exchanges in any Member State. However, even after the implementation of these Directives, a number of potential problems remain, which could limit the success of these markets or hinder access by SMEs to them. The Commission is prepared to take further actions to tackle such problems.